Markup and profit margin are often confused. Markup is based on cost while margin is based on selling price. This calculator shows you the selling price, profit, and actual margin so you can price your products correctly and maintain healthy margins.
Selling Price:
Profit Margin:
How to Use This Tool
Enter the cost of your product or service.
Enter the markup percentage you want to apply.
Click Calculate to see the selling price, profit, and actual profit margin.
The Formula
Selling Price = Cost x (1 + Markup % / 100). Profit Margin = (Selling Price - Cost) / Selling Price x 100. Note: margin and markup are different — a 50% markup equals a 33.3% margin.
Why It Matters
You source widgets for $12 each and want a 40% markup. The selling price should be $20, giving you $8 profit per unit. To earn $5,000 monthly profit, you must sell 625 units.